MKT 619 final Project on pricing strategy of Qatar airways and PIA with proposal,presentation and raw data

[+M.Tariq Malik]

MKT 619 final Project on pricing strategy of Qatar airways and PIA with proposal,presentation and raw data

MKT 619 final Project on pricing strategy of Qatar airways and PIA with proposal,presentation and raw data

MKT 619 final Project on pricing strategy of Qatar airways and PIA with proposal,presentation and raw data

[+M.Tariq Malik]

Chapter # 6

 

Conclusion, recommendations and limitations:

 

 

Conclusion,

 

The study was conducted to know Pricing strategy of Qatar Airways and PIA. You have already been seen that we have done some analysis to measure the consumer’s perception. Data was collect from the consumers by offering them structured questionnaires to fill up. The study has found some facts which are given below

 

1. We have found that Qatar Airways has very effective Pricing strategy as compare to PIA and has found according to line of the consumers expectation.
2. Majority of the consumers are currently satisfied with Qatar Airways services as compare to PIA
3. Qatar Airways provide complete information in their ads whereas PIA provide less information about pricing in his advertisement
4. Qatar Airways make true promise related to price in his advertisement as compare to PIA
5. Majority of the consumers shared their views that Qatar Airways tickets are much to high as compare to PIA tickets price
6. Majority of the consumers are willing to pay bit more on Qatar airways services and due to healthy environment
7. Majority of the consumers from Qatar Airways shared their perception they will jump any time if they will got another company with same price whereas PIA consumers have denied our statement
8.  Majority of the consumers rating Qatar Airways services as Excellent and good after comparing to others. But on the others hand most of the consumers says PIA services is not excellent and goods as per our analysis. So it has been proved that Qatar Airways services effective the PIA
9. Most of the consumers from Qatar Airways have agree that we cannot purchase the Qatar airways tickets if price of tickets will increase,

Majority of the consumers from PIA airways also shared their thinking that they will also not purchase the PIA tickets if the price of tickets would increase

[+M.Tariq Malik]

Recommendation

 

On the base on analysis and Conclusion there are some vital suggestions for both companies

 

1. As per finding, majority of the consumers says they will not purchase both companies tickets, if price will increase, So company should first study the consumers perception then set its products and services price according to consumers  expectation
2. PIA should that clearly mentioned tickets and services price in his advertisements. Price should not be hide in the ads, as most of the consumers could not get price information from PIA ads as per finding
3. We have found all services of PIA very poor as compare to Qatar Airways, PIA should improve his physically services as well as fly services to get maximum consumers satisfaction
4. Both companies should conduct a survey why consumes want to shift to another brands, as per finding most of the consumers from both company want to shift another brand if they will find any others company with same services
5. Tickets price of Qatar Airlines Company have been found high as compare to PIA or others company, So in the age of competition Qatar should adopt that price strategy which would be line to the consumers
6. Both companies should offers some promotion price to their consumers to keep them loyal
7. Both companies should set their price according to consumers desired

 

 

[+M.Tariq Malik]

6.3 Limitations

 

• Time and resources are the major limitation in this project.

 

• In this study open ended questions have not been  used so that consumer have not shared their comments fully, because in our study close ended question have been used to determine the preference of consumers related to both company pricing strategy.

 

 

PART II

 

 

a) Introduction of the student

 

 

 

 Last Degree Obtained:

 

 

 

 

 

 

 

 

b) Appendix/Appendixes

 

 

 

Section 1

 

1. 1.      Which airlines  tickets are you using
   
   
   1. a.      Qatar Airways
   2. b.      PIA
   3. c.       If Others (Please mention that company name  here)

 

12. From how many years you are using selected companies services?

 

1. 1 Years
2. 2 years
3. 3 Years
4. 4 Years
5. More than 4 Years

 

 

 

 

 

 

3. The company does not provide complete details about the pricing in ads?.

 

1. Strongly Agree
2. Agree
3. Neutral
4. Strongly Disagree
5. Disagree

 

4. The company truly claims about offering lowest price of your selected brand in his ad.

 

1. Strongly Agree
2. Agree
3. Neutral
4. Disagree
5. Strongly Disagree

 

The pricing of tickets are according to the values it delivers to the customers

 

6. Strongly Agree
7. Agree
8. Neutral
9. Disagree

Strongly Disagr

 

 

6. In general, do you feel that tickets prices are:

1. Much too high
2. Somewhat high
3. About right
4. Somewhat low
5. Much too low

7. I Would pay a bit more for environmentally efficient product and service.

10. Strongly Agree
11. Agree
12. Neutral
13. Disagree

Strongly Disagree

 

I will select another brand if my brand is not available in given price range

 

1. Strongly Agree
2. Agree
3. Neutral
4. Strongly Disagree
5. Disagree

 

9. Thinking of similar products and service offered by other companies, how would you compare our product prices to theirs?

1. Excellent
2. Good
3. Average
4. Poor
5. Very Poor

 

 

10 How do you rate your company products and services?

 

                                   Excellent            Good          Average             Poor            Very Poor

Quality                                                

Style                                                    

Pricing                                                              

 

11. I will not purchase the tickets if the prices would increase.

 

14. Strongly Agree
15. Agree
16. Neutral
17. Disagree

Strongly Disagr

 

1. 2.      In your opinion tickets rates of your selected brand are?

 

1. a.      Excellent
2. b.      Good
3. c.       Average
4. d.      Poor
5. e.      Very Poor

 

 

13. Do you agree that your selected companies set its price according to consumers desired?

 

1. Strongly agree
2. Agree
3. Neutral
4. Disagree
5. Strongly Disagree

 

 

14. Do you satisfy with company product and service price?

 

1. Extremely satisfied
2. Satisfied
3. Neutral
4. Not satisfied nor dissatisfied
5. Extremely dissatisfied

 

Section III

(Personal Information)

Name: _________________________

Q: 1 Your gender:

            (a)        Male                (b)        Female

Q: Your age:

a)                  less than 20 years

b)                  20 to 30 years

c)                  30 to 40 years

d)                  40 to 50 years

e)                  More than 50 years

 

Q:2  Your education:

a)      Matriculation

b)      Intermediate

c)      Graduation

d)      Masters and above

 

Q.3      You’re Occupation: (if working) ______________________________________

Q.4      You’re monthly spending on Soft drink?:

 

a)      Less than 1000

b)      1000 to 2000

c)      2000 to 3000

d)      3000 to 4000

e)      More than 4000

 

 

 

 

nbsp;&n}�&b��d��e  Religious Travels

• Pakistani Expatriates

 

The existing market segmentation strategy of PIA is reasonable enough because it covers all necessary parameters that are to be focused in doing market segmentation for Airline Company.

 

 

 

 

3.4 Target Market Of PIA

 

 

From the Demographic Segmentation, PIA is targeting the income and occupation oriented people. The classification of both categories is as follow.

 

• Income Segmentation

 

From income segmentation of PIA, those who falls under the category of upper class and upper middle class.

 

• Occupation Segmentation

 

From occupation Segmentation that PIA is taking in to account, there are two main sub heads of working class and business class. The working class includes all those who are working as an employee inside and outside the country. In business class all those people are included who are having business.

           

From the Geographic Segmentation of PIA. All the audience from the domestic and international regions are included. In domestic people within the country are included and people residing outside Pakistan.

 

From the Behavioral Segmentation PIA‘s target audience is categories as follow.

 

In the occasion based market segmentation of PIA.

 

• Hajj’s Occasion.

 

When Hajj operation in going all those people flying from different cities of Pakistan to Saudi Arabia for the performance of Hajj. 

 

• Eid’s Occasion.

 

When Eid occasions are near people within the cities and outside the country move to their homes for having Eid Occasion together with family.

 

• New Years’ Occasion.

Now people prefer to have New Year with their family that’s why all those people coming back to Pakistan from different countries or moving outside Pakistan to different countries and also all those people moving within the country are targeted over here.

 

• Loyalty Status.

 

PIA gives different benefits to the fliers. But all those who travel a lot get the benefit of frequent fliers which carries few discount rates on the tickets. To such audience PIA not only gives the discount facility but also the facility of pick and drop to them.

 

From the Psychographic Segmentation of PIA, the target audience of PIA will be the following.

 

• Social Class

 

In Social Class PIA targets the tourists, religious travelers and Pakistani Expatriates.

 

• Tourists

 

All the tourists from different regions of the country or from different countries come to Pakistan for tourism purpose or go outside the country. Because PIA is having highest rate of linking the remotes areas of Pakistan.

 

• Religious Travels

 

All the religious travelers for example people going for Hajj etc are targets over here.

 

• Pakistani Expatriates

 

As PIA is a national flag carrier airline that’s why people residing outside the country feel a unique sort of feeling  to get into the National Airline. PIA is not just and Airline but also acts as the ambassador of Pakistan in the whole world. 

 

 

 

 

 

3.5 Product mix pricing strategies

 

PIA is offer following price strategies to keep the consumers happy

 

Premium, PIA use a high price where there is uniqueness’ about the product or services such high prices are charge for luxuries

 

Cheep value pricing. This approach is used where external factors such a recession or increased competitor forces companies to provide products and services to retain the sales. So PIA also adopting these strategies to retain the maximum consumers

 

 

3.6 Pricing Objectives

 

Like Qatar Airways PIA have also set their price objectives to achieve the consumer’s expectation as well as generating revenue, improve the quality of services and retain the consumers towards his services

 

3.7 Price changes

 

 

PIA also offers different price strategies according to areas. PIA set the price according to different segment.  So price adjustment is according to geographically bases and depends on company service.

 

3.8 Inflating price changes:

 

Like others company PIA also changes its price inflation when its competitors change their price.  It might be happened in the changes on competitor’s price.

 

 

3.9 Competitor's reactions to price changes:

 

 

 It is clear when that whenever PIA will offer his services in lowest rates, others companies will also set their price low. So price change in one company leads to changes others too 

[+M.Tariq Malik]

c) Bibliography

 

 

1. Ouwersloot H., & Tudorica A., 2001, Brand Personality Creation through Advertising, Maastricht Academic Center for Research in Services, Maastricht University – Holland.
2. Aaker, D.A., (1996), Building Strong Brands. New York: The Free Press
3. http://www.qatarairways.com/index.html
4. http://www.piac.com.pk/

 

 

[+M.Tariq Malik]

Questionnaire

 

Your questionnaire is approved. You are required to incorporate the changes which are mentioned in this evaluated questionnaire. Furthermore, you are required to start working on final project and upload your final project on VULMS with the opening of first assignment for project submission.

 

 

Keep in mind the following instructions for final project:

• Include complete data analysis & interpretation in final project.

• Include questionnaire in annexure in final project.

In case of any problem feel free to contact via course email ([e-mail]) or via 042-111 880 880 Ext. 392

 

 

Section 1

 

1. 1.      Which companies tickets are you using
   [a1] 
   1. a.      Qatar Airways
   2. b.      PIA
   3. c.       If Others (Please mention that company name  here)

Ask this question at the end of questionnaire at number 11

2. In your opinion tickets rates of your selected brand are?

 

1. Excellent
2. Good
3. Average
4. Poor
5. Very Poor

 

3. The company does not provide complete details about the pricing in ads?.

 

1. Strongly Agree
2. Agree
3. Neutral
4. Strongly Disagree
5. Disagree

 

4. The company truly claims about offering lowest price of your selected brand in his ad.

 

1. Strongly Agree
2. Agree
3. Neutral
4. Disagree
5. Strongly Disagree

Ask this question at the end of questionnaire and modify this as:

 

The pricing of tickets are according to the values it delivers to the customers

 

6. Strongly Agree
7. Agree
8. Neutral
9. Disagree

Strongly Disagr

 

5. Are you satisfied with the pricing strategies of the air lines tickets you are using?

1. Yes
2. No

 

6. In general, do you feel that tickets prices are:

1. Much too high
2. Somewhat high
3. About right
4. Somewhat low
5. Much too low

7. I Would pay a bit more for environmentally efficient product and service.

10. Strongly Agree
11. Agree
12. Neutral
13. Disagree

Strongly Disagr

8. In a given price range, If my preferred brand of Airline company is not available at the market, it makes little difference to me if I must choose another brand[a2] 

1. Strongly Agree
2. Agree
3. Neutral
4. Strongly Disagree
5. Disagree

 

9. Thinking of similar products and service offered by other companies, how would you compare our product prices to theirs?

1. Excellent
2. Good
3. Average
4. Poor
5. Very Poor

 

 

10 How do you rate your company products and services?

 

                                   Excellent            Good          Average             Poor            Very Poor

Quality                                                

Style                                                    

Pricing                                                              

 

11. I will not purchase the tickets if the prices would increase.

 

14. Strongly Agree
15. Agree
16. Neutral
17. Disagree

Strongly Disagr

 

This question should be ask at the question number 2

12. From how many years you are using selected companies services?

 

1. 1 Years
2. 2 years
3. 3 Years
4. 4 Years
5. More than 4 Years

 

 

13. Do you agree that your selected companies set its price according to consumers desired?

 

1. Strongly agree
2. Agree
3. Neutral
4. Disagree
5. Strongly Disagree

 

 

14. Do you satisfy with company product and service price?

 

1. Extremely satisfied
2. Satisfied
3. Neutral
4. Not satisfied nor dissatisfied
5. Extremely dissatisfied

 

Section III

(Personal Information)

Name: _________________________

Q: 1 Your gender:

            (a)        Male                (b)        Female

Q: Your age:

a)                  less than 20 years

b)                  20 to 30 years

c)                  30 to 40 years

d)                  40 to 50 years

e)                  More than 50 years

 

Q:2  Your education:

a)      Matriculation

b)      Intermediate

c)      Graduation

d)      Masters and above

 

Q.3      You’re Occupation: (if working) ______________________________________

Q.4      You’re monthly spending on Soft drink?:

 

a)      Less than 1000

b)      1000 to 2000

c)      2000 to 3000

d)      3000 to 4000

e)      More than 4000

 

---

 [a1]Which Airline you are using for travelling?

 [a2]This is a very long question. Simplify it

:150%'>��>n��dx�e>

nbsp;&n}�&b��d��e  Religious Travels

• Pakistani Expatriates

 

The existing market segmentation strategy of PIA is reasonable enough because it covers all necessary parameters that are to be focused in doing market segmentation for Airline Company.

 

 

 

 

3.4 Target Market Of PIA

 

 

From the Demographic Segmentation, PIA is targeting the income and occupation oriented people. The classification of both categories is as follow.

 

• Income Segmentation

 

From income segmentation of PIA, those who falls under the category of upper class and upper middle class.

 

• Occupation Segmentation

 

From occupation Segmentation that PIA is taking in to account, there are two main sub heads of working class and business class. The working class includes all those who are working as an employee inside and outside the country. In business class all those people are included who are having business.

           

From the Geographic Segmentation of PIA. All the audience from the domestic and international regions are included. In domestic people within the country are included and people residing outside Pakistan.

 

From the Behavioral Segmentation PIA‘s target audience is categories as follow.

 

In the occasion based market segmentation of PIA.

 

• Hajj’s Occasion.

 

When Hajj operation in going all those people flying from different cities of Pakistan to Saudi Arabia for the performance of Hajj. 

 

• Eid’s Occasion.

 

When Eid occasions are near people within the cities and outside the country move to their homes for having Eid Occasion together with family.

 

• New Years’ Occasion.

Now people prefer to have New Year with their family that’s why all those people coming back to Pakistan from different countries or moving outside Pakistan to different countries and also all those people moving within the country are targeted over here.

 

• Loyalty Status.

 

PIA gives different benefits to the fliers. But all those who travel a lot get the benefit of frequent fliers which carries few discount rates on the tickets. To such audience PIA not only gives the discount facility but also the facility of pick and drop to them.

 

From the Psychographic Segmentation of PIA, the target audience of PIA will be the following.

 

• Social Class

 

In Social Class PIA targets the tourists, religious travelers and Pakistani Expatriates.

 

• Tourists

 

All the tourists from different regions of the country or from different countries come to Pakistan for tourism purpose or go outside the country. Because PIA is having highest rate of linking the remotes areas of Pakistan.

 

• Religious Travels

 

All the religious travelers for example people going for Hajj etc are targets over here.

 

• Pakistani Expatriates

 

As PIA is a national flag carrier airline that’s why people residing outside the country feel a unique sort of feeling  to get into the National Airline. PIA is not just and Airline but also acts as the ambassador of Pakistan in the whole world. 

 

 

 

 

 

3.5 Product mix pricing strategies

 

PIA is offer following price strategies to keep the consumers happy

 

Premium, PIA use a high price where there is uniqueness’ about the product or services such high prices are charge for luxuries

 

Cheep value pricing. This approach is used where external factors such a recession or increased competitor forces companies to provide products and services to retain the sales. So PIA also adopting these strategies to retain the maximum consumers

 

 

3.6 Pricing Objectives

 

Like Qatar Airways PIA have also set their price objectives to achieve the consumer’s expectation as well as generating revenue, improve the quality of services and retain the consumers towards his services

 

3.7 Price changes

 

 

PIA also offers different price strategies according to areas. PIA set the price according to different segment.  So price adjustment is according to geographically bases and depends on company service.

 

3.8 Inflating price changes:

 

Like others company PIA also changes its price inflation when its competitors change their price.  It might be happened in the changes on competitor’s price.

 

 

3.9 Competitor's reactions to price changes:

 

 

 It is clear when that whenever PIA will offer his services in lowest rates, others companies will also set their price low. So price change in one company leads to changes others too